ABSTRACT
The 1981 Economic Recovery Tax Act further exascerbated the trend by substantially shortening the depreciation period for breeding stock while increasing the depreciation period for race horses. To close on a positive note, there are new marketing programs being used by state breeders' associations, and the racing programs of both Standardbreds and Thoroughbreds are being modified to increase the potential for profitable racing. The rapidly increasing supply of horses at the upper levels can be absorbed only if enough new horse owners are created to purchase them. Too many newcomers are subjected to high-pressure sales and hoopla, have bought horses at inflated prices and then have found no one interested in buying those horses or their off-spring. Horses used for commercial purposes account for less than 20% of the population. Renewed research efforts have made progress, but horse people have been slow to adapt to new methods.
